Impacting Oranizational Capability - Change Management

3.6.2.2.4 Restructured Organizations

For organizations to work, several elements must align, including structure, strategy, work and job designs, systems and processes, people, rewards, and culture. When organizations restructure due to a merger, acquisition, downsizing, or outsourcing work, there is a chance that the people and processes no longer align with the organization's business goals and objectives.

3.6.2.2.3 Global Competition

Globalization in its literal sense is the transformational process of local or regional phenomena into global ones. It can be described as a process of blending or homogenization by which the people of the world are unified into a single society and function. This process is a combination of economic, technological, socio-cultural, and political forces. Globalization is often used to refer to economic globalization, which is the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. The changing landscape of competition from other countries often forces organizations to change to keep pace and continue to compete in the market.

Harmonize and Align Leadership addresses the need to ensure that leaders are clear about the vision, magnitude, and required actions for leading a change effort. Key actions include:

Coach the leader. Prepare the system for change. Select and build an implementation team. Create a compelling vision. Design a communication plan.

Challenge the Current State addresses the recognition that something can be different—a preferred future that dares the status quo to innovate. Key actions include:

Collect and analyze data. Determine organizational readiness. Establish change management roles. Build the business case.

3.6.4.2 Infrastructure and Roles

Commitment to the change means creating an infrastructure to support the change design and implementation and assigning roles to those charged with executing the strategy. A leader (sponsor) champions the effort, giving it credibility; a TD professional (change agent or facilitator) puts in place the means to accomplish the change initiative. Change management roles are unique to every organization. The table outlines the differences between the role of the leader/sponsor and the facilitator/change agent. Some organizations may choose to change some of the roles, but this is a good place to start.

3.6 Change Management

Talent development professionals are well positioned to facilitate change because they connect people, process, and work. Change management is the capability for enabling change within an organization by using structured approaches to shift individuals, teams, and organizations from a current state to a future state. Once initiated, change follows its own nonlinear path in response to uncertainties, reactions, and guidance from those involved. There are tools, resources, processes, skills, and principles for managing the people side of change that practitioners should understand and implement in order to achieve preferred outcomes. Research shows that most companies don't manage change well, which makes capability in this area a differentiator for talent development professionals.

3.6.4.3 Process Used to Plan and Implement a Change Strategy

An organizational change strategy is a plan that describes the specific steps that occur to move from the current state to the desired state. TD professionals can use the ATD Change model to guide them through the process of planning and implementing change. The key actions TD professionals should take to plan the change are listed here:

3.6.1.6 Appreciative Inquiry

David Cooperrider's appreciative inquiry (AI) is a shift in the way organizational change is approached. "At its heart, AI is about the search for the best in people, their organizations, and the strengths-filled, opportunity-rich world around them" (Stavros, Godwin, and Cooperrider 2015). This positive perspective is used throughout a change process to learn (by inquiry) about the strengths and possibilities that can be used in the solution. The approach collects people's stories of best practices in a 4-D model to identify the best of "what is" (discovery), envision "what might be" (dream), discuss "what should be" (design), and implement the "what will be" (destiny) from a positive point of view.

I. The Impact of Change on People and Organizations

During change efforts, TD professionals should recognize the likelihood of a natural tension occurring between the organization and its employees.

3.6.2.2.6 Skills Gaps

A report conducted by SHRM (2019) found that "employers are making the effort to invest in reskilling workers, to hire from more diverse talent pools and to work with educational institutions to build talent pipelines." Unfortunately, those methods have had little effect for organizations to source, hire, or retain employees with the skills required. In fact, 83 percent of survey respondents reported difficulty recruiting suitable candidates in the past year. The skills gap issue is a huge force of change as organizations make adjustments. It is an opportunity for TD professionals to help their organizations understand what is needed and position their workforce for the futur

3.6.2.1 TD Professionals Can Reduce the Negative Impact of Change

An organization's need for change may conflict with its employees' needs to maintain their sense of personal security. Organizations need to keep up with the rapid pace at which their sectors are evolving or risk losing out to their competitors. This means employees need to know what knowledge and skills their organizations require in the future and what they need to learn to keep pace with the organizations' requirements. When employees learn that organizational change is going to occur, they may have negative thoughts. The conflicting interests between what the organization requires and what the employee can offer may not seem aligned. Negativity toward change can happen when employees are aware of their organization's needs and worry they cannot meet them. This invariably places a burden on employees who, if unable to meet the expected standards, will soon find themselves searching for a job. TD professionals can help prevent as well as decrease the impact of change. As a matter of practice, they should partner with leadership to prevent this tension as much as possible by: ensuring that senior leadership is keeping employees informed about the organization and its future checking whether employees are developing the skills the organization will require in the future to address change confirming that both parties are aware of the needs and expectations of the other, involved in planning for the future, and working toward the same goal. TD professionals should also be prepared to help organizations implement change to lessen the impact throughout the change process. [See 3.6.2.4]

According to Daniel Pink's (2009) motivation theory, people have an innate need to direct their own lives, learn and create new things, and contribute to their organization and the world. His terms for these are autonomy, mastery and purpose:

Autonomy gives employees some freedom over some aspects of their work. Mastery allows employees to master their own learning. Purpose gives employees a chance to contribute to a cause greater than them.

Demonstrate the Need

Before an organization can transform itself, it must recognize the need to do so. Failure to identify the need for change is among the most common barriers to an organization's ability to adapt to new requirements. Attitudes like, "We've always done it this way," "It has always worked before," and "If it ain't broke, don't fix it," are roadblocks on the way to change. Management's commitment is critical to the success of any organizational transformation. Leaders must have a clear vision of where they want to lead their organizations and a plan for accomplishing it. The first step is to break from old, self-limiting paradigms—those preconceived ways of looking at the world are major barriers to change. Lasting change requires adjusting the organization's culture by changing its shared expectations, values, and beliefs. TD professionals can help by assessing the need: Conduct external and organizational scans. Collect data to identify business needs. Identify potential change initiatives. Analyze the data. Deliver data analysis feedback. [See 2.2.2 and 2.8.3]

3.6.1.1 Introduction to Change Management Models

Change is a constant for organizations that expect to maintain a competitive advantage. TD professionals should understand change theories and models to help their organizations successfully navigate change. Whether deemed positive or negative, all changes affect an organization and those who lead or facilitate it. Change is part of growth and learning, and it will occur regardless of what else happens. It needs to be championed to achieve certain strategic or operational objectives while minimizing the discomfort, disruption, and disequilibrium it can create for employees and customers. Someone in the organization must balance the importance of today with changes in the future. Change management models can serve as road maps for TD professionals to offer guidance and cautions along the road to change. Models demonstrate action and steps that flow from start to finish and, in some cases, offer detailed process guidance.

3.6.2.4 Prepare for How Change Affects People and Organizations

Change is constant and the pace will continue to get faster. TD professionals should be prepared with a specific skill set to address the constant churn of change and how they can help the rest of the organization address it too. TD professionals should be aware of specific tactics for change, including: Practice resilience or the ability to adapt well to difficult events that disrupt their lives. Maintain a positive attitude and look for the good in everything. Demonstrate flexibility and adaptability in everything that comes their way. Learn new skills within their job function and beyond. Schedule time to reflect and think about the exciting future and the positive options available. Learn or relearn time management skills, such as focus, chunking projects, and not trying to multi-task.

3.6.4.8 Motivating Employeaes During Change Efforts

Change is a business decision that has significant emotional and political effects on people. What motivates employees will vary, but TD professionals can help others understand why motivating factors are a critical element to consider. Motivation helps minimize resistance and avoid failure to institutionalize the change. Failure to maximize retention during major change can also affect its outcome. Motivation is classically defined as the desire to work or the amount of effort put forth on a job. Everyone has a mindset that determines how and why they behave in a certain manner, and these actions are based on motivational factors, such as personal goals, organizational and personal reward systems, and job enrichment. Motivating employees to achieve their potential is one of the most difficult challenges facing any manager or supervisor. During a change initiative the need is expanded, and TD professionals can help management understand how to motivate employees during a transition. During a change initiative, employees may be asked to serve double duty by continuing their current jobs and taking on additional responsibilities as part of the change management team. By training managers and supervisors in employee motivation theory, they can better understand what motivation is and how to tap this drive among their employees. The most valuable recognition comes directly from an employee's manager (Clifton and Harter 2019). Many managers think that the only thing that motivates employees is money. Unfortunately, motivational experts agree that while money is not the best way to motivate employees, "It is a rare manager who systematically makes the effort simply to thank employees for a job well done, let alone to do something more innovative to recognize accomplishments" (Nelson 2005). To help managers course-correct, TD professionals should create a practical list of motivating ideas they can share with managers, including personal discussion about the future, professional growth opportunities, or giving them a chance to lead a project. One of the best things they can do is help management understand how to motivate employees during a change initiative by rewarding those who have embraced change and providing support to those who have not.Change is a business decision that has significant emotional and political effects on people. What motivates employees will vary, but TD professionals can help others understand why motivating factors are a critical element to consider. Motivation helps minimize resistance and avoid failure to institutionalize the change. Failure to maximize retention during major change can also affect its outcome. Motivation is classically defined as the desire to work or the amount of effort put forth on a job. Everyone has a mindset that determines how and why they behave in a certain manner, and these actions are based on motivational factors, such as personal goals, organizational and personal reward systems, and job enrichment. Motivating employees to achieve their potential is one of the most difficult challenges facing any manager or supervisor. During a change initiative the need is expanded, and TD professionals can help management understand how to motivate employees during a transition. During a change initiative, employees may be asked to serve double duty by continuing their current jobs and taking on additional responsibilities as part of the change management team. By training managers and supervisors in employee motivation theory, they can better understand what motivation is and how to tap this drive among their employees. The most valuable recognition comes directly from an employee's manager (Clifton and Harter 2019). Many managers think that the only thing that motivates employees is money. Unfortunately, motivational experts agree that while money is not the best way to motivate employees, "It is a rare manager who systematically makes the effort simply to thank employees for a job well done, let alone to do something more innovative to recognize accomplishments" (Nelson 2005). To help managers course-correct, TD professionals should create a practical list of motivating ideas they can share with managers, including personal discussion about the future, professional growth opportunities, or giving them a chance to lead a project. One of the best things they can do is help management understand how to motivate employees during a change initiative by rewarding those who have embraced change and providing support to those who have not.

3.6.4.4 Individual Change Readiness

Employees may experience several readiness stages before they can make a true commitment to change. First, they may deny that they need to change; next they may contemplate a change; and then they'll recognize that a problem exists and there are ways to deal with it. Only at this stage are they ready to make a specific, concrete plan. And finally, in the fourth stage, they will act on the plan (Prochaska, Norcross, and DiClemente 1994). TD professionals should recognize that employees will be in different stages of the change process and some may need to be motivated. In general, the percentage of people motivated to change depends entirely on how the change is sold versus some innate lack of commitment. If a sense of urgency is created, the benefits of a change are explained, and individuals have an opportunity to influence the change outcomes, the percentage of those committed to change can be considerably higher sooner. [See 3.6.2.3]

Guide Implementation requires that change agents and leaders keep the implementation moving forward. Key actions include:

Encourage involvement. Engage stakeholders. Reach out to naysayers. Build momentum with short-term gains. Identify ways to increase resilience.

Evaluate and Institutionalize is the wrap-up step. Key actions include:

Evaluate the impact and the process. Institutionalize the change. Make sure teams have wrapped up. Plan a celebration (Biech 2007, 2016). [See 3.6.1.7]

3.6.4.1.2 Defining the Current State

In most cases, TD professionals find a pain point that is the motivator for steering away from the status quo. Such factors include shrinking market share, increasing customer demands, or continuing inefficient, obsolete processes. In these cases, the pain of maintaining the status quo is too great. A significant change will be accepted if it is proven to those affected that the present way of doing things is more painful than what accompanies the transition. The pain of the present is the prime impetus for movement into the future. To define the current state, TD professionals should collect and analyze data, determine the organization's readiness to make a change, and assess the consequences of not changing. They may also build the business case for change, which may include the data that was gathered, the current situation, competitive considerations, business and operational impacts, preliminary risk assessment, cost/benefit analysis, and a timeline. [See 3.1.7.2 and 3.3.1.3]

3.6.2.2.2 Information Overload

In today's organizations, people are overwhelmed with information, and more arrives every day. For example, 12,000 Wikipedia pages are created daily; 300 hours of video are uploaded every minute; and most employees spend 13 hours a week on email, which equates to more than three months per year. Information overload is caused by too much information and not enough time to decipher which is accurate from which is incorrect or poor quality. All employees must be able to sort through all the information to decide what needs to be changed and how.

3.6.2.2.10 Increased Diversity in the Workforce

Integrating diversity (such as different genders, ages, races, and cultures) into organizational change efforts can enhance the success of most types of organizational change. In fact, organizational change and diversity efforts are linked, because most organizational changes involve components of diversity. To manage how realities such as generation gaps and a diverse group of leaders affect today's work environment, TD professionals should understand what motivates each group and provide learning opportunities that are flexible enough to meet the needs and interests of each group. They should also help others be aware of how increased diversity requires change in organizational expectations, such as customs, business norms, dress codes, relationships, and communication. [See 1.4]

3.6.1.3 Kotter's Change Model

John Kotter's eight step model, first published in the Harvard Business Review in 1995, begins with an admonishment to create a sense of urgency. From there, the steps include form a powerful coalition, create a vision for change, communicate the vision, remove obstacles, create short-term wins, build on the change, and anchor the changes in corporate culture. Kotter is a strong proponent of creating short-term wins along the way, believing that nothing motivates more than success. TD professionals should determine how to establish smaller targets that can be achieved along the way to the final change goal.

3.6.1.2 Lewin's Three Stage Model of Change

Kurt Lewin first presented his Three-Step Change Model in 1947, which detailed three categories: unfreezing, changing, and refreezing. Over the years, the second category was changed to transformation and movement. Lewin contributed tools to the change management field, viewing situations as being affected by "a sea of forces in motion." Some forces are positive and desirable, while others are negative and undesirable. His force field analysis tool demonstrates how these forces push against each other to maintain a status quo. Force field analysis is a useful concept to identify the forces that are producing the status quo and find ways to strengthen the positive forces and weaken or eliminate the restraining forces. [See 3.6.3.2]

3.6.3.2 Resistance

Most change management models include a discussion about resistance to change. When planning how to deal with resistance, TD professionals should assess the organization's overall change readiness (Biech 2016). Force field analysis is a tool used to assess which forces within the organization will support or prevent the attempt to introduce change. Force field analysis, created by Kurt Lewin, recognizes two types of forces: driving and restraining (Figure 3.6.3.2-1). Driving forces are those that help implement a change, whereas restraining forces are those that will get in the way of change. Because forces are defined based on their positive or negative effect regarding the change, forces may appear to be driving might be shown as restraining. For example, although incentive systems are generally regarded as a positive benefit, if the existing system is not reinforcing the new behaviors, they become a restraining force. [See 2.8.6.4 and 3.6.1.2] Once TD professionals identify the driving and restraining forces, they should develop strategies to either take advantage of driving forces or reduce the effect of restraining forces. By increasing driving forces or reducing restraining forces, the status quo can move toward the wanted change. In addition, because systems move toward equilibrium, it is advantageous to reduce restraining forces while increasing driving forces. However, TD professionals should be aware that an increase in driving forces may naturally increase restraining forces. The plan for reducing resistance should take into account the time necessary for the people and the organization to react to the change. It should also acknowledge the reality that, although there is a need to allow time for adjustment, there is still a timeline that needs to be met.

3.6.1.7 The ATD Change Model

Most change models and approaches are rooted in Kurt Lewin's original three-step model, and the ATD Change model follows a similar approach. While the six steps in Figure 3.6.1.7-1 appear to be linear, like all change models there is some overlap between the steps (Biech 2007, 2016). Change is rarely a nice, neat, linear process.

3.6.4.1.1 Change Categories

Organizational change initiatives vary in size and scope, but generally fall into three categories: Incremental change is when the change is simple and the organization is essentially asking people to continue what they are doing just in a new way. This is a small adjustment made toward a targeted result, such as implementing a new computer system. Transitional change occurs when the change is more complex, but other organizations have undertaken it and their best practices (or benchmarks) can help guide it. An organization could, for example, offer new services or create new products using change to achieve a goal such as increasing revenue. Transformational change is the most difficult type of change. It may even alter the direction in an industry or put the organization on the forefront of a new paradigm. External forces are usually driving the change. It could occur due to a significant decrease in revenue or increases in competition. Examples include restructuring the organization's business strategy or an overhaul of products or services.

Activate Commitment is about the employees and processes of reaching the ultimate goal. There is a need to build commitment, not just compliance to the effort from everyone. Key actions include:

Review current information. Create the road map for key steps. Prepare people for the change. Refine the communication plan.

Risk management is the process of addressing the risk, which may include identifying, analyzing, developing options, monitoring risk, and mitigating potential risk. A risk assessment is a tool that helps identify and measure risk accompanying a change solution (Figure 3.6.3.1-1). TD professionals may use a specific instrument, electronic tool, or follow these steps:

Risk identification involves compiling a list of all the potential things that can occur to prevent achieving the outcome of the change effort. It can be completed by asking individuals or groups or by reviewing past lessons learned. Risk analysis begins by examining the risk events and assigning a risk rating based on a definition and numeric scale. This number is usually posted on a risk level chart as shown in the figure below. The assigned rating pits "probability of occurring" on one axis against "impact to the effort" on the second axis. Option development includes identifying the basic causes and mitigating strategies that will minimize the risks if they happen. Monitor and address risks requires the TD professional or other responsible individuals to ensure that the identified mitigating strategies that modify, alleviate, or prevent the risk from occurring are implemented as needed (Biech 2007).

3.6.3.1 Risk

Risk is a measure of the potential inability of an organization to achieve its objectives as planned. It has two components: the probability or likelihood of failing to achieve the planned outcome the consequences or impact of failing to achieve the planned outcome.

Nurture and Formalize a Design encourages change facilitators to use tools to begin the design. Key actions include:

Select appropriate metrics. Formalize the design. Conduct a risk assessment.

The six steps in the ATD Change Model are:

Step 1. Challenge the Current State addresses the recognition that something can be different—a preferred future that dares the status quo to innovate. This step addresses the question, "why?" Step 2. Harmonize and Align Leadership addresses the need to ensure that leaders are clear about the vision, magnitude, and required actions for leading a change effort. This step answers the question "what?" Step 3. Activate Commitment is about the employees and processes needed to reach the ultimate goal. There is a need to build commitment, not just compliance, for the effort from everyone. This step answers, "how?" Step 4. Nurture and Formalize a Design encourages change facilitators to use tools to formalize the design, create a communication plan, conduct a risk assessment, select appropriate metrics, and deploy other implementation plans. Step 5. Guide Implementation requires that change agents and leaders keep the implementation moving forward while generating short-term wins and identifying ways to increase resilience. Step 6: Evaluate and Institutionalize ensures that the change is embedded into the organizational culture and transforms it to become the new reality.

Within these categories TD professionals may find themselves focusing in different places, such as strategy, processes, or people. Each will have a different influence on the expectations, planning, timeline, and what needs to be accomplished:

Strategy focus, for example, includes leadership, structural, reengineering, divestitures, acquisitions, mergers, consolidation, and systemic organizational initiatives. Process-oriented focus might include initiatives involving technology, software development and installation, systems, continuous (process) improvement, total quality management, and business expansion. People-centered focus could include culture, customer relationship management, HR services, and other actions that affect the workforce.

3.6.2.2.5 Succession Planning

Succession planning is a systematic process for identifying and developing candidates to fill leadership or management positions. As senior and experienced workers leave an organization, a potential knowledge and skills gap exists unless the organization is proactively developing its talent to fill these gaps. Even so, different people in different positions create opportunities for change. [See 2.5]

3.6.4.1.5 Sponsorship

TD professionals may be responsible for identifying and securing organizational sponsorship, which supports the project by committing necessary resources. A lack of commitment to a change management effort can be a serious risk factor.

I. Designing and Implementing an Organizational Change Strategy

TD professionals should be able to use multiple skills to design and implement an organizational change strategy.

3.6.4.1 Change Management Basics

TD professionals should know about change management basics, especially when they are called upon to be a change agent. They should be familiar with the change categories and required actions.

3.6.4.7 Practices to Build Critical Mass

The active support and participation of others is always required to achieve business or organizational goals. The TD professionals' ability to engage others in the identification, assessment, and solution of problems and issues is a critical success factor in change management. They should support this by demonstrating the need, developing employee competencies, and owning the process.

Owning the Process

The details of the change management plan should spell out how employees will be personally involved in the change, since involvement is one way to foster commitment to the change. Although the plan lays out where the organization needs to go and what it will do as a whole to get there, employees still need to decide how work processes will be redesigned to meet the changing needs. This involvement allows them to increase their learning and problem-solving skills and serves as an opportunity for TD professionals to coach employees. The effort to redesign work also provides employees with opportunities to work through the feelings and emotions that are part of adapting to change

3.6.2.2.1 Speed of Change

The growth of content, innovation, and technology is faster now than in any other era in history, and this growth drives the speed of change in organizations. Today's leaders and organizations must keep up with this rapid pace to succeed. Peter Senge, author of The Fifth Discipline (2006), points out that leaders cannot keep up with rapid change through the traditional top-down control mentalities or without a formal structure or process, because total chaos would ensue. Today's leaders need to find the right balance between too much and too little structure for an organization to rapidly adapt its capabilities to survive.

Karl Albrecht described a personal change response cycle to help individuals work though the progressive psychological phases of change response. The four phases are:

Threat. In this phase, individuals are afraid to change the status quo because of fear of the unknown or fear of a state worse than the status quo. Problem. At this point, individuals perceive change to be a lot of work and cause a lot of problems. Because they no longer know the rules, it's difficult for them to complete their jobs. Solution. Overcoming the problems perceived in the previous phase starts to reveal some of the benefits of the change. Habit. As old operating procedures are forgotten, new ones become the norm.

3.6.4.5 Pacing and Transition Strategies

Today's organizations may exist in a continuous state of change―one initiative after another is introduced due to market conditions or leadership's desire to respond to trends or requirements (Pasmore 2015). This constant upheaval can create change fatigue among employees. If possible, one way to balance the pace of change is to intersperse major change initiatives with carefully paced time periods where smaller steps are implemented and evaluated. There are two types of pacing methods: Time-based pacing involves setting milestone dates, which can then be adjusted as needed. Event-based pacing involves triggering actions when the right event occurs. Pacing also requires TD professionals to realize that changing marketplace realities will move the goal posts. In other words, goals and timelines still need to be established, but their pace may need to be stepped up or delayed for reasons out of their control. Celebrating milestones is another way to provide a pacing break, because it provides an opportunity to not only evaluate but also reflect on the change and celebrate the contribution of team members and colleagues. A celebration lifts the spirits, reinforces important values, and provides a sense of accomplishment. A final celebration also provides closure for a successful project.

3.6.2.2.7 Increased Turnover

Turnover can drive change in an organization. Today's workers have extensive skills and knowledge, and knowledge workers are often critical for holding the organization and its processes together. With competitors offering better salaries, career advancement, and job security, today's employees are less loyal to their employers compared with previous generations. In addition, they are more likely to move to different organizations during their careers in search of improved job satisfaction. The tide of incoming and outgoing people brings different perspectives and work experiences. However, it may take some employees time to adjust to the organizational culture and processes of a new employer. The turnover can also create challenges for other employees as they lose or gain co-workers.

3.6.2.2.9 Senior Leadership Hired Externally

When organizations hire externally for top leadership and management positions, the new leader or manager may bring numerous advantages and serve as a force of change in the organization. Executives from other companies or other industries often bring fresh ideas and processes, particularly in key functional areas such as HR, finance, and supply chain management. Whether an external hire succeeds in the new position often depends on the company's TD team, which must understand the organization's business strategy and put systems in place to ensure new executives easily adjust to the new culture.

3.6.1.5 Kubler-Ross Stages of Grief

With her work in the 1960s, Elisabeth Kubler-Ross became one of the first to recognize that humans go through five phases following a loss or change. In her case, it was the families of dying cancer patients. Her change response cycle phases are denial, anger, bargaining, depression, and acceptance. People perceive change as a loss and may move through stages similar to these.

3.6.1.4 Bridges Transition Model

Although transition is different from change, it is a concept TD professionals should be aware of. Transition is the internal psychological process employees go through when they come to terms with a new situation as a result of change. William Bridges believed that people need to start with the ending of the former situation prior to addressing the change. The steps in his transition model include ending, when people need to deal with their tangible and intangible losses; the neutral zone, when re-patterning takes place; and new beginnings, when people need to develop a new identify and experience new energy. He also believed that leaders will be more successful if they provide the workforce with the four Ps when introducing change: purpose for the change picture of the expected outcome plan for navigating from the current situation to the future part that the employee will play in making the changes successful. [See 3.3.3.2]

3.6.4.10 Mindset and Mental Models

Employees bring unique knowledge, skills, and experience to the workplace. When working in change management, TD professionals should be prepared for all types of employees and their mindsets, and be skilled at gathering data, gaining buy-in, addressing reactions, fostering collaboration, and implementing change decisions. Each one requires TD professionals to bring out the best in employees by understanding their mindsets and mental models and how to best tap into them. In addition, TD professionals should be knowledgeable about their own mindsets and mental models so that they recognize how their assumptions, behaviors, and communications affect individuals and teams working to manage the change process. During the change process, TD professionals may find their own assumptions to be challenged, and their success as a change agent may depend upon their readiness to expand their thinking, accept others' ideas, and use new tools. TD professionals should be knowledgeable about management styles, social styles, and emotional intelligence and the role each plays in managing change. [See 1.2 and 3.3.7.1]

Develop Employee Competencies

It is easier to build critical mass when employees throughout the organization have the change management and statistical data competencies required. Understanding Six Sigma, a data-driven approach to analyzing and solving root causes of business problems, is one way to develop employees with these competencies. At the strategic level, Six Sigma delivers improvements and dollars to the bottom line. At the operational level, Six Sigma ensures meeting customer specifications and decreases process variation—the cause of defects that affect customers negatively. It provides specific tools and approaches (process analysis, statistical analysis, lean techniques, and root-cause methods) that organizations can use to reduce defects and improve processes, which increases customer satisfaction and drives down costs. For Six Sigma to succeed in organizations, individuals must develop competencies in statistical data analysis and process redesign, and spread those approaches to others inside the organization. TD professionals have a huge opportunity to initiate and deploy Six Sigma successfully. It takes intensive training to give employees the appropriate skills, but the payoffs are enormous.

3.6.2.2.8 Transferred Knowledge to Emerging Leaders

Leaders who move up the management chain face special challenges as they transition from one level of responsibility to the next. With each step up the corporate ladder, a leader's responsibilities expand and their decisions affect more people. Although emerging leaders and the transition process are a significant force of change within an organization, some organizations lack a development program for the transition to being a strategic leader. [See 1.3.7 and 1.3.8]

The planning and design of most change initiatives is the work of the change management team, which is often referred to as a transition or implementation team. This team plays a critical role in implementation and should, therefore, be assembled carefully. TD professionals should begin thinking about potential team members as soon as the change is under consideration by reviewing these three issues:

Leadership and influence. Trusted senior managers and others with power and authority will ensure the change keeps moving in the right direction. Business unit representation. Including representatives of affected departments will ensure smooth implementation within their groups. Skills, knowledge, and attitude. Team members who are positive about the change will see themselves as problem solvers and persevere to the end.

3.6.2.2 Forces of Change on Organizations

Most TD professionals have experienced many changes—some may be major organizational shifts while others may be smaller programmatic changes. Regardless, TD professionals will be better prepared to facilitate change if they are aware of the driving forces that are the indicators of change.

3.6.4.1.3 Defining Intended Outcomes

TD professionals may be involved in establishing specific, achievable outcomes. This starts with the definition of the business or the organizational need for change. TD professionals may perform an analysis to identify business goals and determine what change is critical to achieving them. Because it is important to start with determining the business goal, it's critical to establish organizational priorities. Ideally, the business goal should be quantitative and time-bound, as well as a legitimate focus of the business.

3.6.4.1.4 Promote the Change

TD professionals may get involved with presenting the need for change to others. To do this they present a convincing argument based on facts and explain where the organization is, where it needs to go, and why. They may also identify how market forces and customer demands are affecting the organization. Information that can have a powerful influence is explaining the consequences for the company if nothing changes.

3.6.4.9 The SCARF Model

TD professionals may want to use the SCARF model to help them remember, recognize, and consider ways to modify a change experience (Rock 2008). When change is likely, the five domains of human social experience—status, certainty, autonomy, relatedness, and fairness (SCARF)—activate either the primary reward or primary threat circuitry of the brain. The model is based on three central themes: The brain treats social rewards and threats with the same intensity as physical rewards and threats (Lieberman and Eisenberger 2009). The ability to make decisions, solve problems, or work together is reduced by a perceived threat and increased by a perceived reward (Elliot and Fryer 2008). A threat response is more intense (and more common) and needs to be minimized in social situations (Baumeister et al. 2001). TD professionals who understand that the five domains automatically trigger a human response can prepare the environment when planning for a change effort. The five domains are: status or the relative importance of self to others certainty or concern about predicting the future autonomy, which addresses the sense of control over future events relatedness or a sense of safety with others fairness or a perception of how fair interactions are. The SCARF model reminds TD professionals about the concerns and perceived threats employees experience during a change effort.

3.6.3.3 Consequences

TD professionals should be aware of the consequences that can occur during a change effort. First, change and the forces for change introduce disruptions that can diminish both the organization's and employees' capacities to envision a clear and positive future. The more disruptive a change is to the status quo, the more it diminishes the capacity to envision the future, and the more likely it will have negative consequences upon personal self-confidence, competence, morale, and self-esteem. Second, the path of change is unpredictable. Leaders of change may think they know where the change will take them, but disruption of a stable system always produces unintended consequences. Organizations often get more than expected—and none of what they wanted.

3.6.3.4 Overcoming and Preparing for Issues Related to Change

TD professionals should not attempt to manage a change with a one-size-fits-all strategy. Change is personal, and risk, resistance, and the consequences of change are often attempts to maintain the status quo. TD professionals can use the tools mentioned or try other things such as: establishing clarity around the purpose, goals, and realities of the change identifying specific reasons for the issue and act upon them creating a mechanism for candid, two-way communication delivering training on resiliency and how to manage change providing training and resources needed for employees to build the skills that support the change providing opportunities to celebrate and reward successes.

I. Change Management Models and Theories

TD professionals should understand change management theories and models and be prepared to support and lead their organization's change efforts. They are change agents, and every solution they implement is a change.

3.6.2.3 Impact of Change on Employees

TD professionals should understand that when a change is introduced, it often triggers a person's survival instincts. Any change may create doubts and questions in a person's mind, and some are predictable. Social considerations include changes in the individual's relationships with others in the work group and the organization as a whole. A person's sympathetic nervous system responds to stress in two ways: fight or flight. The brain tries to maintain homeostasis to protect the body from threats, and change—whether good or bad—is a disruption of this state. As a result, the body's natural reaction kicks the limbic system into gear, creating the fight or flight response. Knowledge of this genuine physical reaction to change provides insight as to how employees deal with change initiatives, and TD professionals need to know how to address them. When TD professionals understand human reaction to change, they will be better prepared to support and lead a change effort. Knowing about Everett Rogers' and Karl Albrecht's models will help them understand how change affects people. Everett Rogers (2003), a professor of rural sociology, researched human reaction to change and introduced a model that predicts them. This model has become a standard reference when planning and guiding organizational change processes. Understanding how some people will take on change and adopt it early while others lag behind is key to informing a change strategy. The model is a bell curve composed of the following categories: Innovators make up 2.5 percent and are the first to embrace the change; they are proud of being adventurous. This category is usually shown at the beginning of a bell curve on the left side. Early adopters make up 13.5 percent of the population and like to take on new challenges. They are trend setters who stay informed and are generally the influential members of organizations. Early majority make up 34 percent of all individuals. They are thoughtful about change initially, become positive about the change based on their observations, and then become deliberate acceptors of the change. This category and the late majority form the peak of the bell curve. Late majority includes 34 percent of the population who are skeptical about change. They may only accept the change because of peer pressure. Laggards include 16 percent of all individuals who hold onto the past and resist change. This outlook becomes problematic if they reject the change completely. This category is reflected by the downslope of the curve on the right side. [See 2.1.4.4] Change agents focus a lot of their attention on the behavioral effects of change, but psychological and social aspects are important too. Psychological and social influences prompt predictable questions from the people affected. TD professionals acting as change agents should anticipate questions and reactions that will arise when the change is implemented. The key lies in change agents placing themselves in the position of those whom the change affects.

3.6.4.6 Communicating Change

TD professionals should use the six Cs of communication to manage change effectively: clear, correct, complete, concise, coherent, and courteous. [See 1.1.1.3] Successful organizational change is directly tied to effective communication, both verbal and nonverbal, in person and digitally. Knowing who is affected by the change and applying the appropriate communication style is helpful. If the TD professional's verbal and nonverbal communication expresses confidence, then selling the change plan is easier. Written communication should also be clear and concise, a skill that greatly contributes to credibility and alignment. The communication process is made up of a two-part (dyadic) system: speaking and listening. When planning a change communication, TD professionals should consider the environment, message, sender, medium, and feedback elements of the communication process. [See 1.1.1.2] TD professionals should communicate status to help employees understand and recognize the need for change—they must first know where the organization is currently and where it needs to go. When they understand the current state of the company—through a state-of-the-organization address from upper management, for example—employees can better appreciate the value of the impending change. Strategic communication is critical when implementing major changes, and should be part education and part marketing. Change leaders should consider the implementation in the same light as a new product, focusing on how to convince customers they need it and building trust in the new product. Strategic communication necessitates evaluating what employees need to do and persuading them why it is in their best interest to change behaviors. TD professionals should project the desired changes in a way that makes them relevant and appealing to those who must carry them out. Additional considerations for such communications include providing periodic updates on how the change initiative is progressing and selecting proper communication channels for communication.

I. Assessing Change Risk, Resistance, and Consequences

To be successful in planning for and implementing change efforts, TD professionals should be skilled at managing the problems that will arise, including risk, resistance, and unforeseen consequences.

Transition Schedule

To ensure full implementation and acceptance of a change, TD professionals should create a transition schedule that considers a variety of factors, including: initiating open dialogue with affected employees to listen effectively and respond to their concerns being aware of customers' expectations to avoid unexpected backlash putting temporary procedures and processes into place in case a system or process does not work correctly planning for financial concerns that may emerge if the change goes over budget preparing the organization's workforce to ensure seamless integration coordinating the timing of other events in the organization so as not to create change fatigue among employees.